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Did large Algerian enterprises pay an equitable tax contribution? Evidence from Longitudinal Data

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  • Fatma Zohra Otmane Rachedi

    (Faculty of Economics, Commercial and Management Sciences, Baji Mukhtar University - Annaba, Algeria)

Abstract

This research paper used financial statements information to measure Effective Tax Rates (ETRs) , which represent the proportion of profits incurred by large Algerian enterprises as a tax burden during a given financial year, and compared them with the Statutory Tax Rates (STRs) imposed by Algerian law. The purpose of the study was to determine whether, in the context of a political economy, that tax contribution respects the principle of Tax Equity. It employed a sample of 114 enterprises for the 2012 to 2018 financial year. The variability between ETRs and STR indicates the intervention of elements that cause differences between the accounting result and the taxable base. Higher ETRs mean that these enterprises are under fiscal pressure and lower ETRs mean that the tax burden effectively supported is inconsistent with these enterprises' profits level. The findings indicate that there are considerable differences in the tax burden borne by these enterprises and that most ETRs were lower than STRs. According to the results of this study, we conclude that large Algerian enterprises have not paid an equitable tax contribution.

Suggested Citation

  • Fatma Zohra Otmane Rachedi, 2022. "Did large Algerian enterprises pay an equitable tax contribution? Evidence from Longitudinal Data," Technium Social Sciences Journal, Technium Science, vol. 33(1), pages 372-389, July.
    • Handle: RePEc:tec:journl:v:33:y:2022:i:1:p:372-389
    DOI: 10.47577/tssj.v33i1.6967
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    References listed on IDEAS

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    1. Gupta, Sanjay & Newberry, Kaye, 1997. "Determinants of the variability in corporate effective tax rates: Evidence from longitudinal data," Journal of Accounting and Public Policy, Elsevier, vol. 16(1), pages 1-34.
    2. Hanlon, Michelle & Heitzman, Shane, 2010. "A review of tax research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 127-178, December.
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    More about this item

    Keywords

    Tax Equity; Tax incentives; Effective Tax Rate; Statutory Tax Rate; Large Algerian enterprises;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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